Islamabad     -   Nepra has deferred its decision on the petition of Central Power Purchasing Agency (CPPA) for Rs2.97 per unit hike in power tariff and directed the petitioner to provide justification for generating expensive electricity from furnace oil.

In a public hearing Nepra has directed CPPA-G to come up with more details regarding power generation from various power plants and justification for electricity generation from Furnace oil. The hearing on CPPA-G petition for fuel price adjustment for the month of September for Ex-Wapda DISCOs was presided over by Chairman Nepra, Tauseef H. Farooqi. NEPRA decided that the hearing on the petition along with fresh details will be held on next Tuesday.

By using expensive fuel (furnace oil) the exchequer was burdened with additional Rs7.2 billion, chairman NEPRA noted. He questioned that why electricity had not been generated from cheaper power plants. “If we transfer the entire raise to the consumers it will be burden on our conscience,” Mr Farooqi remarked. 

The Chairman NEPRA further questioned under what were the compulsions behind use expensive furnace oil for power generation. The regulator asked CPPA to provide plant wise details of power generation. Officials from CPPA said that merit order was followed during for power generation.

Central Power Purchasing Agency (CPPA) had proposed an increase of Rs 2.97 per unit, under fuel price adjustment, for the month of September for Ex-Wapda DISCOs.

According to the petition, submitted by CPPA with NEPRA, total energy generated in September was 13621 Gwh at a total price of Rs70.231 billion which is Rs 5.1560 per kWh. The net electricity delivered to power distribution companies was 13225.35 Gwh at cost of Rs76.886 billion or 5.8136 per kWh. Out of total electricity generation, losses stood at 2.91 per cent.

Since the actual cost of generation was Rs5.8136 per unit in the period under review against reference price of Rs2.8410 per unit therefore it has requested an increase of Rs2.9726 per unit.

According to the data provided to NEPRA, the share of hydropower generation was 5052.84 GWh or 37.09 percent in September. The share of hydropower was 40.33 percent in August. As per the data 2232.44 GWh or 16.39 percent electricity was generated from coal at the cost of Rs 5.3770 per unit in September. In August the share of coal based electricity was 1873.91 GWh or 13.34 percent.

It was informed that around 817.24 GWh or 6 percent electricity was generated from furnace oil. The cost of RFO based electricity was Rs 16.5614 per unit. In August around 505.92 GWh or 3.60 percent electricity was generated from furnace oil at the cost of Rs 12.5112 per unit. In September no electricity was generated from high speed diesel.

In September the energy generated from RLNG was decreased to 2868.46 GWh or 21.06 percent of total generation. The cost of RLNG based electricity was Rs 11.1186 per unit. In August the energy generated from RLNG was 3216.04 GWh or 22.89 percent of total generation. The total generation from local gas-based electricity was 1614.71 GWh or 11.85 percent and the cost was Rs7.0286 per unit.

The generation from nuclear was 749.28 GWh or 5.5 percent and the cost of generation was 0.9442 per unit.

From Iran 49.97 GWh or 0.37 percent electricity was imported at the cost of Rs 11.5709 per unit. From Wind and Solar 149.69 GWh and 61.61 GWh electricity was generated respectively.

From Baggasse  15.11 GWh or 0.11 percent electricity was generated at the cost of Rs6.2089 per unit. From mixed sources 10.01 GWh or 0.07 percent electricity was generated at the cost of 6.7819 per unit.